Tomlinsons Dairies falls into administration

Tue, 15 Oct 2019 | ADMINISTRATION

Wrexham-based dairy firm Tomlinsons Dairies has announced to its 330 employees that it has entered administration.

Based in Minera, Tomlinsons Dairies informed its farmers on Saturday that it was no longer able to process their milk and that they must source a new supplier from Sunday.

Administrators at PwC have confirmed that they have been called in to handle the administration process for the company, which is also based in Chester and Shropshire.

The news comes after a £22 million funding boost in 2017 - following the agreement of a new contract with retailer Sainsbury's - which led to the expansion of its cold storage facilities and the creation of an additional 70 jobs.

However, according to a spokesperson for the company, Tomlinsons has suffered an "accumulation of significant operating losses" in the past few years, with issues such as energy costs and a low cream price only exacerbating their problems.

In a statement, the company stated that it regretted the impact the decision would have on those linked with the firm: "The family shareholders, directors and management of Tomlinsons are devastated by the administration and sincerely regret its impact on their customers, suppliers, farmers and employees."

A spokesperson from the Welsh Government revealed that it would create a taskforce that will work with those affected by the closure. They added: "We are in discussions with farming unions and other stakeholders to consider what support is required at this difficult time.

"We have worked closely with Tomlinsons dairy over the last 18 months to try to help them resolve their ongoing business issues."

PwC will now work with Tomlinsons Dairies to decide whether the company should begin the search for a buyer or seek to sell its assets individually.

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